Demand Driven Design Session

Traditional material planning and control system (ERP/MRP and distribution requirements planning systems) are systems in which detailed forecasts are used to procure needed materials and push manufacturing orders through the production and distribution system to the point of consumption.  This system is typically called “Push and Promote.”  These legacy rules and systems are causing enormous amounts of friction and compromises within and between manufacturers in today’s more complex and volatile supply chains.

The Demand Driven approach is the careful alignment of the organization and its assets with that of the market and/or consumption.  This approach will fundamentally impact most areas of a company. This includes careful synchronization of sales, planning, scheduling and execution with consumption.  Thus, in developing a Demand Driven organizational strategy it will require the involvement of all functional leaders and key players within an organization.

The Demand Driven Design Session is delivered in three phases.

Phase 1:  Data Collection
The Demand Driven Design Session starts with a site visit.  During the site visit a system map will be created in order to understand products, material and information flow through the environment.  Additionally, there will be a series of one-on-one interviews with leadership and key personnel.  The purpose of the interviews is to gather prevalent and recurrent symptoms related to the operational performance of the organization.

Phase 2: Data Analysis and Preparation
From the initial data gathered through the site visit and interviews customized material is formulated in order to:

  1. Clarify operational improvement goals and potential;
  2. Develop a clear picture about what is impeding current operational performance from a systemic level;
  3. Understand each functional area’s typical conflict or struggle with the current system;
  4. How those conflicts or struggle relate to each other at the organizational or systemic level;
  5. What specific assumptions, policies, rules/metrics and behaviors feed into those struggles;
  6. A general demand driven design that may address these issues at both the organizational and functional levels.

Phase 3: The Working Session
After the data analysis and preparation, the management team is ready to define their demand driven design.  The process that the Demand Driven Institute uses is designed to create an environment of active team collaboration both in defining the problem, constructing a breakthrough solution and implementing that solution in a relatively compressed time frame.  Through a 2-3 day session the facilitator guides the management team through a proven process that:

  • Identifies and clarifies the primary limitations to operational performance and improvement and how those limitations impact each specific function within the organization;
  • Develops a demand driven design to achieve said operational goals and potential;
  • Immunizes the organization for potential negative side effects of the demand driven design;
  • Constructs the detailed implementation plan for the Demand Driven Design;
  • Prepares material for buy-in presentations up and down the levels of the organization.

A Management Team taken through this process has the demand driven solution for the organization AND for them – they are no longer blocked. They will better understand the company’s current system, will have the blueprint for what the system needs to evolve to and the actions required to get there.


Demand Driven Design Implementation & Consultation

The staff at the Demand Driven Institute is available to help your company transform itself into a demand driven company.  To inquire about a Demand Driven consultation and implementation assistance please contact: info@demanddriveninstitute.com